Businesses are still in the dark about the budget tax carve-outs
Business owners are still yet to find out what exemptions could apply to them in changes to capital gains tax.
START-UPS and small businesses will be forced to wait longer to find out whether they will receive special treatment under looming tax changes, as the government looks to enact the measures within weeks.
Measures in the federal budget limiting negative gearing to new properties from July 2027 and changing a 50 per cent discount on capital gains tax to the rate of inflation will be debated in late-night sittings of parliament.
Labor has flagged it will seek to pass the laws through the House of Representatives by Thursday, ahead of passage through the Senate.
But the future of the laws remains in doubt, with the Greens not confirming whether it will back the measures after the coalition ruled out supporting the tax change.
Despite the timeline, Treasurer Jim Chalmers has not said when exemptions to the measures would be finalised.
“It’s not unusual for legislative instruments to be used to finalise these sorts of definitions or these sorts of implementation arrangements,” he told reporters in Canberra on Tuesday.
“The timing of the core elements is this week, in the House of Representatives and into the Senate as soon as possible.”
Small businesses and start-ups have been calling for carve-outs to the sector in response to the capital gains tax changes.
Prime Minister Anthony Albanese told Labor colleagues at a caucus meeting that the measures would help to make the housing market more equitable for young people.
“At a time when so many people don’t think the system is working for them, we are working to change the system to give people a better chance,” he said.
“We want young Australians to have a chance to own their own home. This is pro aspiration and pro supply.”
Opposition Leader Angus Taylor repeated calls from Nationals leader Matt Canavan for the government to call an early election in order to get a mandate for the tax changes.
Mr Albanese said during the 2025 election campaign the government did not have plans to make changes to negative gearing or capital gains taxes.
“If you don’t have the courage to call an election now, we will make the next election a referendum on these tax increases,” he told parliament.
“This is a prime minister who has no reverence, no respect for the truth, and certainly no respect for hard-working Australians.”
Mr Taylor said the coalition would still vote against the measures despite the tax changes being tied to a $250 annual tax offset for workers.
“Ramming this legislation through the parliament without sufficient scrutiny is an act of political bastardry and expediency,” he said.
“What Australians see is a bad faith government, a bad faith government playing a cynical political game.”
